St. Petersburg, FL-based HSN is buying the Improvements catalog and Web site from Hanover Direct Inc., for $33.4 million. The deal is expected to close at the end of the month.
Weehawken, NJ-based Hanover Direct will use the proceeds to repay approximately $5.5 million in debt.
Under the terms of the agreement, Hanover’s Keystone subsidiary will provide fulfillment services for the Improvements business for up to three years.
Hanover is pursuing “opportunities” to sell International Male, Gump’s Retail and Gump’s by Mail businesses, said Tom Shull, Hanover’s CEO, in a statement. “Additionally, the company has received unsolicited interest form multiple parties to explore the possible purchase of our Silhouettes business,” he added.
The sales of those properties will support the company’s strategy of focusing on its home-style business through the Company Store, Domestications and Scandia Down brands.